Britain’s Bold Decade: A New Industrial Strategy to Supercharge Growth

22 June 2025

Drax coal power station near Selby in Yorkshire is ranked fifth in Europe in terms of causing the highest damage costs to health and the environment. Photograph: John Giles/PA

In a moment of economic recalibration, the UK government is preparing to unveil an ambitious ten‑year, multi‑billion‑pound industrial strategy next week an initiative designed not only to revive national growth, but to transform Britain’s economic DNA into one defined by innovation, resilience, and green competitiveness.

Spearheaded by Prime Minister Keir Starmer and Business Secretary Jonathan Reynolds, the strategy forms a cornerstone of their broader “Plan for Change.” It signals a deliberate pivot towards favouring high‑growth sectors such as advanced manufacturing, clean energy, life sciences, and digital industries. Those sectors form the backbone of modern economies, and here, they are being positioned as engines for a refreshed post‑Brexit Britain.

At the centre of the strategy is a significant commitment to skill development. A pledge of £275 million is earmarked specifically for vocational training and apprenticeships across England, with the aim of tackling skills shortages in critical industries like defense, engineering, and artificial intelligence. Technical Excellence Colleges will emerge from this plan alongside specialist short courses in AI and digital manufacturing initiatives intended to close the gap between academic curricula and industry needs.

Equally pivotal is the push to bring energy costs in line with European counterparts a perennial sticking point since the UK’s industrial electricity rates had become the highest among major economies. The government is reportedly exploring multi‑billion‑pound subsidies to lower bills for energy‑intensive sectors through rebates, tax relief, and exemptions from certain energy charges. Negotiations include extending relief up to 90 percent for industries facing exorbitant energy costs, potentially reshaping the UK’s competitive positioning on the global stage.

Clean energy and sustainability are also central themes. Revenue from the Crown Estate will funnel into offshore wind infrastructure, with a £400 million boost declared in recent weeks to strengthen the wind‑turbine supply chain. Clean air ambitions extend beyond renewables work is underway to integrate stricter environmental criteria into North Sea oil and gas approvals, ensuring new projects account for full lifecycle emissions.

The strategy’s architecture aligns with a state‑led investment model. A new “global talent fund” worth £54 million is set to attract top science and technology professionals primarily to draw talent from the U.S. reflecting a conviction that human capital is as vital as physical infrastructure. In parallel, the recently established public investment company, Great British Energy, will channel government funds into large‑scale renewable generation, signaling the state’s readiness to intervene more directly in the energy sector .

These pieces of the puzzle are underpinned by regulatory initiatives that aim to remove roadblocks to industrial growth. For example, environmental guidance now mandates evaluation of downstream emissions in oil and gas licensing applications, bringing approvals for mega‑projects like Shell’s Jackdaw field under more stringent scrutiny. Meanwhile, consultation continues on reducing electricity network charges and dismantling policy costs from energy bills, to ensure British firms can compete on a level playing field.

Taken together, this strategy reveals several clear objectives. First, it seeks to update Britain’s skills infrastructure to support sectors at the technological frontier. Second, it addresses debilitating cost burdens that have historically hindered industrial competitiveness. Third, it acknowledges the long‑term role of clean energy in economic security while balancing that with pragmatic management of fossil fuel policy. Finally, it positions the state not just as regulator, but as strategic investor and talent magnet.

For businesses, this tsunami of policy signals a demand for transformational agility. Manufacturers, utilities, tech firms, and renewables developers will need to recalibrate operations, invest in workforce training, and engage with new state‑backed funding mechanisms. For financial markets, clarity in the government’s priorities could sharpen investment flows benefiting green infrastructure, advanced manufacturing, and regions neglected in previous cycles.

Risks remain, both political and fiscal. While the strategy’s financial architecture is robust in parts, critics point to modest upfront funding relative to long‑term ambitions. Tories and Reform UK may contest the green energy thrust, injecting uncertainty into public outlook. Moreover, ultimate success hinges on consistent strategy implementation over three electoral cycles, a tall order for any government.

Yet, the ambition is undeniable. The plan melds job creation, innovation policy, decarbonization, and economic security into a unified framework aimed at rising global competition. It frames Britain as a nation ready to adapt, invest, and innovate in a rapidly shifting world willing to harness public power to shape private success.

As the full plan rolls out, the pressing test will be execution: delivering technical excellence colleges, calibrating energy bill relief, advancing offshore wind schemes, and unlocking private capital. For firms and investors, this is a once‑in‑a‑generation invitation, to align strategy with state ambition and to compete in the next chapter of Britain’s economic story.